Distribution with Quality of Service Considerations:The Capacitated Routing Problem with Profits and Service Level Requirements

Inspired by a problem arising in cash logistics, we propose the Capacitated Routing Problem with Profits and Service Level Requirements (CRPPSLR). The CRPPSLR extends the class of Routing Problems with Profits by considering customers requesting deliveries to their (possibly multiple) service points. Moreover, each customer imposes a service level requirement specifying a minimum-acceptable bound on the fraction of its service points being delivered. A customer-specific financial penalty is incurred by the logistics service provider when this requirement is not met. The CRPPSLR consists in finding vehicle routes maximizing the difference between the collected revenues and the incurred transportation and penalty costs in such a way that vehicle capacity and route duration constraints are met. A fleet of homogeneous vehicles is available for serving the customers. We design a branch-and-cut algorithm and evaluate the usefulness of valid inequalities that have been effectively used for the capacitated vehicle routing problem and, more recently, for other routing problems with profits. A real-life case study taken from the cash supply chain in the Netherlands highlights the relevance of the problem under consideration. Computational results illustrate the performance of the proposed solution approach under different input parameter settings for the synthetic instances. For instances of real-life problems, we distinguish between coin and banknote distribution, as vehicle capacities only matter when considering the former. Finally, we report on the effectiveness of the valid inequalities in closing the optimality gap at the root node for both the synthetic and the real-life instances and conclude with a sensitivity analysis on the most significant input parameters of our model

The inventory routing problem under uncertainty with perishable products:an application in the agri-food supply chain

In this paper, we propose a dynamic and stochastic approach for an inventory routing problem in which products with a high perishability must be delivered from a supplier to a set of customers. This problem falls within the agri-food supply chain (ASC) management field, which includes all the activities from production to distribution. The need for high-quality products that are subject to perishability is a critical issue to consider in the ASC optimization. Moreover, the demand uncertainty makes the problem very challenging. In order to effectively manage all these features, a rolling horizon approach based on a multistage stochastic linear program is proposed. Computational experiments over medium-size instances designed on the basis of the real data provided by an agri-food company operating in Southern Italy show the effectiveness of the proposed approach

Solving simulation optimization problems on grid computing systems

The optimal assignment of berth slots and cranes to shipping services is the central logistics problem at modern marine container terminals and should be formulated to specifically account for its stochastic nature. We use a computational grid to solve a major seaport logistic problem by a simulation optimization approach centred around a queuing network model of the logistic process of interest. We emphasize the power of grid computing for the simulation optimization studies and we design and implement an algorithm for distributing the computational load to parallel processors. Performance of the algorithm is demonstrated numerically using real-sized problem instances